Doing Business in California - Government Contracting

Finding the Right Statewide Contracts in California

There are many reasons why people choose to live in California. The state has some of the best schools and is home to more than 50 of the Fortune 500 companies in the world. California is also a state that is very vibrant with countless business opportunities. As a business owner, it doesn’t hurt to live in one of the world’s lagest GDP territory. This can put a lot of pressure on some business owners to succeed however, there are amazing rewards at the peek of your climb.

Finding the Right Statewide Contracts in California

Doing business in California has its pros and cons just like any other state. Variables like the tax rate, employment and regulations can be the difference between your decision to do business in a particular state (in this case California) or elsewhere.

The state takes its economic growth seriously. As an entrepreneur, you’ll find lots of resources to help you make your business successful. You can find all the information you need from the state website www.ca.gov. You can check tax rates, get information about how to register your business or find out the business documents you need to start and how to find them.

What About California Taxes?

The tax rate is often significantly higher than you’ll find in most other states. However, there aren’t many states with an outreach program for businesses that have representatives at the county level. They have elaborate programs that support entrepreneurs. One such program is the CPUC (California Public Utility Commission). The CPUC supports small businesses by raising awareness on policy and registration issues as well as providing resources regarding contractual opportunities in the state.

Moving To California?

California is rich in state and aerospace contracting opportunities. You can get assistance in the form of information on demographics, personnel placement information, getting state and local permit, tax rates and rules, loan programs from the California business investment services.

For small businesses, this assistance is offered through workshops and seminars, inter-agency coordination and through direct advocacy to entrepreneur. If you are an SME looking to take advantage of GO Biz in California, you can visit the state website to see more details on their programs.

How Does the Government Contract Bidding Work?

Every year the state of California purchases goods and services amounting to approximately $10 billion. The purchases can range from stationary to information technology services. Small businesses can provide goods and services after being certified under the Multiple Award Scheme (MAS).

The Multiple Award Scheme Program is under the GSA schedule contracts. These government contracts define long term agreements with indefinite delivery times and indefinite quantities. These schedules contain details on set prices, terms of delivery, and other terms related to the particular goods and services that you seek to supply to the state.

How are Government Contracts Awarded?

The Procurement Division is the agency tasked with providing procurement support on behalf of the state. This agency acts as the central purchasing authority for educational institutions, state departments, agencies, and cities. Institutions and state agencies can still procure goods and services without the procurement division as long as they do not exceed $100 per transaction and are not informational products.

You can find open bids on California State Contracts Register (CSCR). Local agencies compare bids depending on which one gives the best value in terms of price, reliability, suitability, etc. These agencies are not simply looking for the best price, they place a lot of emphasis on your ability to deliver as stipulated by the contract.

Types of Government Contracts in California

There are several types of available in the state of California and they include:

Statewide Commodity Contracts: These contracts are administered by the Department of General Services. This contract places emphasis on delivery time, the participation of small business, savings levels and environmental factors.

Cooperative Agreements: Multi-state agreements that define the supply of IT and non-IT services.

State Price Schedules (SPS): Designed for unique and rare items that disqualify competitive bidding.

There are several types of available in the state of California and they include:

Software Licensing Program: The state signs contracts with resellers to get discounted software products.

Master Agreements: The aim of the master agreement is to simplify the procurement process by identifying a list of prequalified vendors.

Statewide Food Contracts: These are contracts for the supply of food for the state. They are developed through a competitive bidding process and do not have price limits.

What Types of Contracts Should my Business Bid On?

The first step is to familiarize yourself with the different type of contracts. Some statewide contracts require your products to be certified by the Environmentally Preferable Contracts Procurement Program. You need to understand these requirements and determine what type of contract is suitable for your business. There are lots of resources online which outline the requirements in greater detail.

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